Cryptocurrencies, Tokens, Virtual and Digital Currencies

tomas.enrique (63)in GEMS • 3 years ago

Cryptocurrencies, Tokens,

Virtual and Digital Currencies

Criptocurrency, Tokens and others.gif
[Edited in Canva by: @tomas.enrique]

Although we will often hear these terms synonymously, they do not really mean the same thing; each one has marked differences with the others.

Source Image: Images Google

Cryptocurrencies own the same characteristics as money: they are expendable, divisible, portable and have a limited supply. Generally, they are intended to be used as physical cash: to pay for goods and services or as a store of value and savings.

Tokens are digital assets that can be used within the ecosystem of a given project; Unlike cryptocurrencies, they require another blockchain platform (not their own) to function.

Advertisers buy ads with tokens, and browser users as compensation for hosting and display ads, respectively; which were then distributed to publishers after of the limited time.

Digital currencies only exist in electronic form and, the difference between physical banknotes and fiat currencies (a dollar bill, a euro coin, etc.), are intangible.

Virtual currency is one with an unregulated environment, issued and controlled by its developers and used as a payment method among the members of a specific virtual community. For example the money integrated into video games, such as World of Warcraft tokens, GTA Online cash cards or FIFA points from the EA Sports game of the same name.